Members of company pension schemes are leading an “exodus” of funds into self-invested personal pensions (Sipps), as more employers close their defined-benefit, or “final-salary”, schemes to new members. But employees are being warned to check the terms of their transfers, and the type of Sipp they use.

According to the Association of Consulting Actuaries, 81 per cent of defined-benefit schemes are now closed to new members, and the number of schemes no longer adding benefits linked to years of service has increased to 14 per cent – from 10 per cent two years ago.